Thursday, April 12, 2012

REGISTRATION MANDATORY FOR REALTY AND HEDGE FUNDS: SEBI

The Securities and Exchange Board of India (SEBI) has unveiled rules for regulating private
pool of capital to increase systemic stability, while making it mandatory for real estate funds and
hedge funds to register with the regulator. The regulator has classified all types of funds into
three categories: venture capital, private equity and hedge funds.While the first two categories of funds have to be close-ended with a minimum tenure of three years and are barred from engaging in leverage, hedge funds are allowed to be open-ended or close-ended and can engage in leverage.

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